Nordway Corporation purchased 90 percent of the voting shares of stock of Olman Company in 20X1. During 20X4, Nordway purchased 40,000 Playday doghouses for \(\$ 24\) each and sold 25,000 of the doghouses to Olman for \(\$ 30\) each. Olman sold all of the doghouses to retail establishments prior to December \(31,20 \mathrm{X} 4\), for \(\$ 45\) each. Both companies use perpetual inventory systems.

\section*{Required}

a. Give the journal entries recorded by Nordway Corporation for the purchase of inventory and resale to Olman Company in 20X4.

b. Give the joumal entries recorded by Olman Company for the purchase of inventory and resale to retail establishments in \(20 \times 4\).

c. Give the workpaper eliminating entry or entries needed in preparing consolidated financial statements for \(20 \mathrm{X} 4\) to remove all effects of the intercompany sale.